Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Unprofitable Stocks in Hot Water

OKTA Cover Image

Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure.

Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. Keeping that in mind, here are three unprofitable companiesthat don’t make the cut and some better opportunities instead.

Okta (OKTA)

Trailing 12-Month GAAP Operating Margin: -2.8%

Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ: OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.

Why Does OKTA Give Us Pause?

  1. Estimated sales growth of 9.6% for the next 12 months implies demand will slow from its three-year trend
  2. Track record of operating losses stem from its decision to pursue growth instead of profits
  3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.1 percentage points

At $97.02 per share, Okta trades at 6x forward price-to-sales. If you’re considering OKTA for your portfolio, see our FREE research report to learn more.

The RealReal (REAL)

Trailing 12-Month GAAP Operating Margin: -9.4%

Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.

Why Is REAL Not Exciting?

  1. Value proposition isn’t resonating strongly as its active buyers averaged 7.7% drops over the last two years
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. High net-debt-to-EBITDA ratio of 23× could force the company to raise capital at unfavorable terms if market conditions deteriorate

The RealReal’s stock price of $5.38 implies a valuation ratio of 21.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than REAL.

Lucid (LCID)

Trailing 12-Month GAAP Operating Margin: -374%

Founded by a former Tesla Vice President, Lucid Group (NASDAQ: LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.

Why Are We Wary of LCID?

  1. Revenue growth over the past two years was nullified by the company’s new share issuances as its earnings per share fell by 9.6% annually
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Lucid is trading at $2.36 per share, or 4.4x forward price-to-sales. Check out our free in-depth research report to learn more about why LCID doesn’t pass our bar.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

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